Question

West Coast Tours runs boat tours along the West Coast of British Columbia. On March 5, 2020, it purchased, with cash, a cruising for $870,000, having a useful life of 10 years or 18,250 hours, with a residual value of $213,000. The company's year-end is Decem 31. Required: Calculate depreciation expense for the fiscal years 2020, 2021, and 2022 by completing a schedule. (Note: Depreciation is calculat using half year convention. Assume actual hours of service were: 2020, 790; 2021, 1,850: 2022, 1,605.) Depreciation Method Straight-Line Double-Declining Balance Units-of- Production Year 2020 2021 2022

Answer 1

Solutions 12 in 2020, Deprot will be fo to month straight line Cost 870,000 Less: Residualvalue _ 213,000 Depreciablecost n. 657,000 Devide by usefulelife 1 0 Annual Deprecicllion 65700. 2020 Depreciation =65760x 20 __54150 Double declining balance Depreciation Route 2040= 140x2 2020 Depreciation 870,000x20% 10% = 145.000 2021 Depregiation (8701000-14500v) X 201=145.000 2022 Depreciation (870,000 - 145.00o-145200x20 116000 - Whitsof production Cost 870,000 I less : Resideal value 213,000 sDepreciable cost Devide by to tell hours 13860 Depreciation per buyer 657,000 2020 Deprecia 2021 790x50 1850x50 1605850 3g soo 92,500 80,250 2022 -pleanedilen